Crude Oil Passes $100, Asian Stocks Decline

For the first time in nine months Crude Oil passes the USD100 a barrel mark caused by low stock in the U.S and political concerns in the Middle East.

Asian stocks reversed their gains to decline for the first time in five days following disappointing economic data from Asia. Australian retail sales figures which did gain by 0.1per cent in June after the previous months 0.1 per cent fall came under estimations of 0.3 per cent gain.

Output in Japan fell to 52.3 for June from 54.1 in the previous month. While this is over the 50 barrier which shows an economy in growth, it still came under the analyst expectations.

Non manufacturing PMI in China also fell, from 54.3 in May to 53.9 in June, while business expectation sub index also dropped, from 62.9 n May to 61.8 in June bringing the Shanghai Composite Index downwards after four days of straight gains.

Stocks

All Asian Indices fell with Australian ASX 200 losing 2.02 per cent on the back of the weak retail sales data and RBA comments. In Japan the Nikkei 225 lost 0.44 per cent, the Chinese Shanghai Composite shedded 1.52 per cent while the Hong Kong Hang Seng lost 1.86 per cent.

Forex

Another steady day for the forex markets with the AUD down 0.69 per cent against the USD, showing an overall decline of nearly 10 per cent since the start of April. The depreciation expected to continue after RBA hints of lowering the interest rate. Meanwhile the EUR dropped against the USD by 0.08 per cent as the USD held firm after the release of strong factory data in the U.S.

Commodities

Crude oil moved above the psychological $100 barrier with a climb of 1.98 per cent in the overnight session. The precious metals rebounded with gold up 0.03 per cent, silver climbing 0.82 per cent and Copper up 1.02 per cent.

What to watch today

US markets will be closing early ahead of the colorful 4th July celebrations. European stocks and indices futures show a lower opening. Later we’ll see European Services PMI data and Non-farm employment data and jobless from the US.